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William Cavanaugh CEO, Carolina Power & Light Co.

When Carolina Power & Light Co. announced that Cavanaugh would become chief executive officer in May 1996, his predecessor Sherwood Smith predicted, "From the outside, one would probably be unaware that a change had been made."

Two and a half years later, CP&L has undergone major change.

Within a week in November the utility announced the $354 million acquisition of Fayetteville-based North Carolina Natural Gas Co. and plans for a $250 million gas turbine plant in Rowan County.

Earlier CP&L acquired the Internet unit of Interpath Communications and combined it with its CaroNet telecommunications company.

The expansions follow significant changes in senior management and cost-cutting that has accelerated under Cavanaugh, who joined the firm in 1992 after spending more than 20 years at Entergy Corp.

Overall, some insiders say, Cavanaugh has sparked more change at CP&L in the past two and a half years than the company experienced in several previous decades.

Chris Evans President, CEO, Accipiter Inc.

In a market with many promising software start-ups but few "home runs" to date, Evans proved -- for the third time -- that a Triangle software company can strike gold.

On April 9, Evans, then 31, sold his 2-year-old company, Accipiter, to CMG Information Services. Evans and Accipiter's investors collected $48 million in stock -- a record for a privately held software company in the area's history. It was the third time he'd attracted a multimillion-dollar payday for a software company he'd founded.

He'd previously help found DaVinci Systems and HotLinx.

The latest deal gave a big payday to local venture capital firms Intersouth Partners, Tri-State Investment Group, the Aurora Funds and Southeast Interactive Technology Funds. The big winner was Intersouth, which saw its early investment increase seven-fold. Such a big win was crucial for area funds, since previous payoffs make it easier to raise future funds.

Evans is now a vice chairman of Engage, a CMG subsidiary. Though he doesn't appear ready to leave in the near future, Triangle venture capitalists are eagerly waiting for Evans' next deal.

Lamont Ewell Durham city manager

Durham Chamber of Commerce President Tom White knew that Durham had hired a promising new city manager when Ewell, just a few days on the job, agreed to speak to a group of investors eyeing a Durham real-estate investment.

"He did a beautiful job of giving them his impressions, and it was very objective," White said. "I think it really made a big impression."

After his first full year in Durham, Ewell gets high marks from most for his candor and straightforward approach.

Ewell's decision to hire Ted Abernathy to become the City of Durham's first economic development director in February helped demonstrate his commitment to attracting new business.

"We've got a really strong partner," White said. "Now it's a triumvirate, with the city and county" and chamber all working to lure and keep businesses.

Ewell said the city is mapping out a comprehensive strategy to determine what types of industry to pursue. The city retained the Research Triangle Foundation to survey existing buildings and brownfield sites, and Ewell's staff has sought input from the chamber, Downtown Durham Inc. and a Hayti neighborhood development group.

"We've started aligning ourselves so we're seeing it in a unified way," Ewell said.

Ewell has also taken an unusually strong stand in favor of Urban Retail Properties' proposed Southpoint mall in southeast Durham County.

Opponents say the new mall will create traffic havoc and hurt Durham's existing malls. But Ewell said Southpoint will help Durham retain retail sales now going to Wake and other areas.

"To lose the opportunity would be detrimental," he said. "My guess is the mall will be built somewhere."

Marye Anne Fox Chancellor, North Carolina State Univ.

Fox has worked hard in her first six months to put her campus in the spotlight, making dozens of appearances across North Carolina.

During a tour of a fire station with a faculty group, Fox garnered widespread publicity by sliding down a flagpole while dressed in a bright-red suit.

Such marketing prowess was noticeably absent under her effective but publicity-shy predecessor, Larry Monteith.

"Only if the business community knows me and the N.C. State team will it be possible to have the kind of candid exchange that leads to real progress," Fox said.

Fox has been particularly outspoken in promoting N.C. State's burgeoning Centennial Campus. A noted chemist, she came to Raleigh from the University of Texas, where she was vice president of research.

Fox contends that N.C. State's engineering and science orientation have it poised for dramatic growth.

"I believe that N.C. State, as a land grant institution, has a serious obligation to relate to the needs of the community, and to assume leadership in causing the transformation of the land grant mission as our nation's technological capabilities evolve."

A key decision for Fox in 1999 will be hiring a new dean of N.C. State's College of Management. Dean Richard Lewis is returning to teaching.

Fox pledges to remain visible.

"We must be engaged with the problems faced by the state, and that means a chancellor who is comfortable working with the community, across the whole range of issues," she said.

Isaac Horton President/CEO, Remote Source Lighting Intl.

Fewer entrepreneurs in the Triangle rode the rollercoaster from success to difficulty more rapidly than Horton.

Horton burst on the scene in early 1997 when his Remote Source Lighting International moved to the Triangle from California, partly to take advantage of contacts including financier Maceo Sloan and developer Pat Gavaghan.

RSLI's lighting system technology and Horton's charisma proved irresistible to George Soros, Consolidated Edison and Carolina Power & Light. They and others combined to put up $30 million in capital and promise another $60 million.

In January, Horton announced three deals that he said would produce $300 million in sales over the next five years, mostly to Asian companies or research centers. He quickly assembled a team of executives with manufacturing and investment banking expertise.

By late summer, however, sales had fallen through, RSLI's management team had largely dissolved and plans for a $150 million bond offering fizzled. The collapsing Asian market, rampant spending and unforeseen difficulties with the technology were blamed.

The company shut its Durham headquarters at the end of September, relocating most operations to California to slash costs.

Bob Ingram CEO, Glaxo Wellcome plc.

Talk about your vote of confidence.

When push came to shove last February, Glaxo Wellcome's board pushed away a potential $70 billion merger with SmithKline Beecham in large part because of concerns that Ingram wouldn't be in charge.

Ingram was named chief executive of the drug giant's British parent in October 1997 while remaining CEO of the U.S. subsidiary. He now ranks as the 52,000-employee company's No. 2 leader, behind Chairman Richard Sykes.

But the company announced in September it would ease Ingram's burden by making George Morrow CEO of the U.S. subsidiary, effective Jan. 1.

Glaxo's revenues suffered in 1998 as Zantac lost its patent protection. But the company's stock shot up, along with other drugmakers in 1998, and Glaxo's market value now tops $115 billion.

Ingram also pushed Glaxo further into the world of direct-to-consumer advertising, putting tens of millions of dollars into advertising campaigns for the anti-smoking system Zyban and herpes medication Zovirax.

Ingram remains a major force in local affairs. He served as chairman for the 1998 Triangle United Way fund-raising campaign, which raised a record $22.34 million, up 11.7 percent over last year.

Glen Lang Cary town councilman

Lang has been viewed in 1998 as both a hero and a hellion.

Answering the call by some Cary citizens for a change in the way the town does business, Lang won a council seat in the November 1997 elections. Lang sold his computer software company for nearly $2 million in 1994 and now is a consultant.

He unabashedly spoke out against developers and business leaders in an effort to slow Cary's growth.

His volatile tenure has been marked by public name-calling. The histrionics were partly designed to attract attention, he said.

"Some of the quotes were necessary to get the media focused," Lang said. "Sometimes you do go overboard."

The town's planning procedures are now peppered with higher impact fees, a cap on new housing permits and an adequate public facilities (APF) law. The latter requires certain infrastructure to be in place before a new development can be approved.

Lang, who is expected to run for mayor, said he's been effective.

"I'll bet there weren't two mayors in the county who knew what an APF was a year ago," he said.

Roger Perry real estate developer

Perry may not have made as many headlines in 1998 as in previous years, but that's a testament to his biggest achievement during the year: Receiving the final go-ahead on his proposed Meadowmont development.

The 435-acre "new urbanism" project, which will mix working and shopping alternatives amid the 1,300 homes planned for the area, was the focus of a three-year battle in Chapel Hill. In pitting nearby residents against town officials and developers, Meadowmont became the poster child for the heated growth debates that recently have bubbled to the surface across the region.

But Perry weathered the legal and verbal attacks from opponents, who said the project would clog surrounding streets and lower the value of neighbors' property. In August, he settled his disputes with them by agreeing to delay the opening of several streets within the development.

Perry's East West Partners development firm now is moving forward with infrastructure to the site on the eastern edge of Chapel Hill, and it already has negotiated the sale of several parcels for projects like a hotel, office buildings and a village-center mix of retail and apartments.

"We have a strong sense of responsibility that Meadowmont ends up being something good for Chapel Hill, and that means we still have a lot of work ahead of us," he said.

Howard Phillips General partner, South Square Mall

There's nothing like competition to raise the profile of an absentee property owner fighting to protect his investment.

Phillips, a general partner of South Square Mall who lives in Irving, Texas, concedes the flap over whether Durham should build a new mall might not have occurred had he renovated his 23-year-old property sooner.

But Urban Retail Properties of Chicago surprised local business leaders when it announced plans for Southpoint mall on 143 acres at the intersection of Fayetteville Road and Highway 54. That's four miles southeast of South Square.

Durham city officials embraced Urban's plans, which they think can stop the leakage of retail sales into Wake County.

Phillips struck back, announcing plans for a $50 million renovation at his mall -- provided the city turns down Southpoint. South Square recently hired F.N. Thompson as general contractor for the renovation.

The Durham city council will vote Jan. 19 on Southpoint's rezoning.

Phillips said he wishes that he had stepped into the ring sooner. He feels many city officials had made up their minds before he presented his side.

"I think the appeal of the new shopping center was already set by the time I came to debate it," he said. "I am not sure if all of the parties involved have had enough time to get their information out so that a debated decision can be made," said Phillips.

When former U.S. Sen. Terry Sanford died last April, many believed his dream of bringing a world-class performing arts complex to the state also would end.

But momentum for the cause heightened, thanks in part to Sanford's long-time friend Semans.

Semans was at Sanford's side when he announced his plan of building a $100 million complex to house arts venues and teaching facilities.

"A lot of us are doing it because he started it," Semans said. "That way we will always keep his name going."

Semans, a great niece of legendary tobacco magnate James B. Duke, has for decades been one of North Carolina's noted philanthropists. Her involvement gives the project credibility as organizers seek a site and funds to start the project.

"It's amazing," she said. "People come from all over the state for these meetings -- and everyone always shows up."

"I continue to be impressed with the enthusiasm of these people," Semans said.

Dr. Ralph Snyderman CEO, Duke University Health System

In 1998, Duke leased one hospital, Durham Regional, and bought another, Raleigh Community. They acquired interests in companies specializing in home health, hospice and assisted-living, among others.

"In many ways it exceeded our expectations," Snyderman said, referring to the growth in 1998. The additional businesses will push the fiscal 1999 annual revenue to an estimated $1.7 billion.

Behind it all was a blueprint designed by Snyderman and core executives atop Duke's health system.

Snyderman said developing that master plan enabled the health system to work quickly and aggressively in acquiring other health care businesses that would augment Duke's in-patient business and provide efficiencies.

"The long-term lease with Durham Regional was absolutely essential to this. If anything, that was the linchpin."

With a monopoly on hospital services in Durham County secure, Duke felt confident to invest in services such as urgent care and assisted living.

Duke believed those services would improve efficiencies anyway, but knowing that all hospitalized patients in Durham County would have access to the Duke's outpatient health services spurred larger and more rapid investments.

Snyderman said Duke has made strides to integrate the management of the two hospitals. But the community has a right to expect more from Durham Regional and affiliated health clinics, he said.

Norris Tolson N.C. Secretary of Transportation

In trying to fix a broken DOT, Tolson became a symbol of aggravation to frustrated commuters.

After a year in charge of the state Commerce Department, Tolson was tapped in January to fix DOT, which was rife with allegations of mismanagement and ethical lapses.

The former DuPont executive instilled business practices, such as establishing protocols so several people signed off whenever guidelines for selecting road projects weren't followed. He said that helps projects pass "the sunshine test" and improve public perceptions.

"This will encourage people to make sure the projects they're recommending are good ones," he said.

To make DOT more customer-friendly, he established a toll-free line in which department staffers answer questions about projects within 36 hours.

But the attempts to win friends and influence people came up short when Tolson reorganized the state's Transportation Improvement Program, lists of road projects DOT plans to do within seven years.

For years the plans have been so crammed with pet projects that no one took them seriously. When Tolson lopped off dozens of projects so that the plans realistically reflected what could be built and paid for over the next several years, howls of protest rose from all over.

"People have very high expectations for transportation in this state, and we created that by being aggressive about building roads," Tolson said.

Tolson, who is considering running for governor in 2000, hopes to build on that dialogue in 1999. He plans to push for a 55 percent increase in road maintenance funds and more mass transit money.

"We can't just build our way out of the situation we're in with new roads. We need to attack it on a number of fronts," he said.

Stan Van Etten President, CEO, International Heritage Inc.

Van Etten was at the center of perhaps the Triangle's biggest business controversy this year.

International Heritage, a multilevel marketing company with revenues at its peak topping $100 million annually, filed for Chapter 7 liquidation on Nov. 25 after facing a withering attack by various state regulators and the Securities and Exchange Commission.

Shortly after Van Etten took IHI public in March, the SEC cracked down, contending he was operating one of the largest pyramid schemes in history.

After IHI's market cap exceeded $1 billion, the SEC suspended trading. Several days later, the SEC ordered the company temporarily closed. IHI then had 160,000 sales reps nationally.

The SEC sued IHI, Van Etten and two other IHI founders for securities fraud.

"There's no question in our mind that this is a scam designed to take advantage of people," said Alan Hirsch of the North Carolina Attorney General's office.

Van Etten counters that the attorney general's office approved of its plans before the SEC crackdown.

The crackdown spooked many sales reps, and thousands demanded refunds. Despite layoffs and a last-ditch effort to convert to a catalog-type sales company, IHI filed for bankruptcy in November, leaving more than $30 million in debt.

Van Etten faces civil charges filed by the SEC. He is demanding that the case be litigated so he can have a hearing.

"I'm not leaving the community," Van Etten said. "I have no grudges against anybody. But I would have wanted (IHI) to turn out differently."

Selby Wellman Senior vice president, Cisco Systems Inc.

Wellman laid the groundwork for continued expansion by one of the Triangle's fastest-growing companies and led the charge for improved roads around Research Triangle Park.

Cisco opened its fourth building on its 100-acre RTP campus in August, and it has two more buildings in the works as it pushes toward employing 2,000 people at its East Coast headquarters within two years. The RTP hub, which opened just four years ago, now has more than 800 employees.

Wellman also negotiated the August purchase of 70 acres in RTP for future expansion, and the company also took options on another 130 acres. Cisco would have enough room for about 7,000 employees.

But getting all of those workers to the office is a major sticking point, due to daily traffic tie-ups at RTP.

Fearing commuting gridlock could imperil the park's future, Wellman rounded up executives to push for relief from state officials. Their lobbying led to a plan for $435 million in improvements, such as accelerating road widening projects, adding turn lanes and expanding mass transit.

Now, Wellman and other business leaders must put their money where their mouths are and find a way to fund the program, which goes beyond the state's regular roads program.

Bob Young CEO, Red Hat Software, RTP

David vs. Goliath? In '98, many preferred Young over Bill Gates.

Young and Red Hat's 50-something RTP employees toiled in relative obscurity since the company's founding in 1995. The company's Linux operating system package was well known among hard-core programmers, who crave an alternative to Windows. But, in local circles, Red Hat employees were most widely known for their habit of wearing bright red fedoras at local tech mixers.

That changed in September, when Young successfully landed equity investments from Intel and Netscape.

The Red Hat story isn't new, but the tech world is fixated on Microsoft's antitrust battle with the government.

Red Hat and Linux present an alternative to Windows. Suddenly, the nation's attention was transfixed on Red Hat, which national reporters saw as the David to the Goliath of Microsoft Chairman Gates.

The New York Times profiled the company shortly after the Intel/Netscape deal. A Microsoft attorney waved a Red Hat package in a federal courtroom in November -- proof, Microsoft claimed, that Windows had competition. And the Wall Street Journal profiled new president Matthew Szulik, who left Relativity Technologies.

In February, Red Hat will move more than 130 employees into more than 60,000 square feet of office space. It's now the area's most famous start-up.

As Young and Szulik note, Red Hat now faces the task of living up to its huge national stature.

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